Multiple Choice
The line showing potential GDP is a vertical straight line because
A) there is only one level of full employment at any point in time.
B) economists are unsure about how to determine potential GDP.
C) it represents the minimum level of real GDP in a recession.
D) when nothing else changes,a higher price level has no effect on real GDP.
E) the aggregate supply curve is upward sloping.
Correct Answer:
Verified
Correct Answer:
Verified
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